JP Morgan ready to pay $1 billion penalty…

According to Bloomberg at

JPMorgan Chase & Co. is poised to pay close to $1 billion to resolve market manipulation investigations by U.S. authorities into its trading of metals futures and Treasury securities, according to three people with knowledge of the matter.

The potential record for a settlement involving alleged spoofing could be announced as soon as this week, said the people who asked not to be named because the details haven’t yet been finalized. The accord would end probes by the Justice Department, the Commodity Futures Trading commission and the Securities and Exchange Commission into whether traders on JPMorgan’s precious metals and treasuries desk rigged markets, two of the people said.

Why would they offer to pay a $1 billion to get the Feds to stop investigating unless they feared something much bigger is at stake?  I will leave you with those thoughts.  You make up your mind.

Food for Thought or Not (or Ramblings from an Innocent Bystander)